CURRENT SITUATION IN INDIAN LEATHER INDUSTRY
V.M. Khaleelur Rahman
Leather market continues to be firm. It is generally believed in the leather circles that this year 2012 will also be as active as last year in growth, production and export of leather and leather products. The overwhelming interest shown by exporters, importers and dealers of leather, leather products, chemicals, machinery and equipment etc. to participate in the present India International Leather Fair proves that the Indian leather industry is determined to attract the world.
INCREASE IN EXPORTS
According to Council for Leather Exports, the export of leather and leather products increased by 27.33% to US$2741.48 million or Rs.125604.91 million during the period April-October 2011 from US$ 2152.98 million or Rs. 98654.40 million during the same period in 2010. The details of the product wise export performance during these periods are given below:
CATEGORY (Value in Million Rs) % VARIATION
APRIL-OCT 2010 APRIL-OCT 2011
FINISHED LEATHER 21998.24 26271.08 19.42%
LEATHER FOOTWEAR 36063.70 43882.36 21.68%
FOOTWEAR COMPONENTS 5666.17 7758.73 36.93%
LEATHER GARMENTS 10110.00 15331.20 51.64%
LEATHER GOODS 21140.53 27565.04 30.39%
SADDLERY AND HARNESS 2252.81 2855.87 26.77%
NON-LEATHER FOOTWEAR 1422.95 1940.63 36.38%
TOTAL 98654.40 125604.91 27.32%
Source : DGCI &S
CATEGORY (Value in Million US$) % VARIATION
APRIL-OCT 2010 APRIL-OCT 2011
FINISHED LEATHER 480.08 573.40 19.44%
LEATHER FOOTWEAR 787.04 957.79 21.70%
FOOTWEAR COMPONENTS 123.66 169.34 36.95%
LEATHER GARMENTS 220.64 334.62 51.66%
LEATHER GOODS 461.36 601.64 30.41%
SADDLERY AND HARNESS 49.16 62.33 26.79%
NON-LEATHER FOOTWEAR 31.05 42.36 36.40%
TOTAL 2152.98 2741.48 27.33%
The following table gives the details of India’s export of leather and leather products to different countries during April-October 2011 vis-à-vis April-October 2010
COUNTRY (Value in Million US$)
APRIL-OCT % change
2010 2011
GERMANY 285.00 426.23 49.56%
U.S.A. 198.98 243.28 22.26%
U.K. 279.13 316.27 13.31%
ITALY 249.89 317.05 26.88%
FRANCE 142.95 159.22 11.39%
HONG KONG 196.58 199.15 1.31%
SPAIN 134.32 168.38 25.35%
RUSSIA 9.20 17.64 91.74%
NETHERLANDS 81.57 109.38 34.08%
AUSTRALIA 27.88 35.27 26.51%
NEWZEALAND 3.19 3.22 0.80%
DENMARK 28.81 36.75 27.58%
GREECE 5.93 5.90 -0.49%
CANADA 16.82 22.00 30.78%
SWITZERLAND 12.83 19.02 48.25%
SWEDEN 18.54 26.14 40.98%
S. AFRICA 17.56 22.38 27.47%
AUSTRIA 14.10 19.47 38.06%
BELGIUM 40.35 64.78 60.57%
JAPAN 11.21 15.44 37.73%
PORTUGAL 21.19 28.82 36.05%
CHINA 42.87 66.57 55.27%
IRELAND 3.03 3.88 27.97%
U.A.E. 40.09 59.09 47.39%
INDONESIA 10.97 13.41 22.31%
KOREA REP. 17.76 23.30 31.23%
FINLAND 6.94 11.02 58.91%
SAUDI ARABIA 12.62 22.89 81.36%
OTHERS 222.68 285.51 28.21%
TOTAL 2152.98 2741.48 27.33%
Source : DGCI &S
INCENTIVES NEEDED TO COMPETE IN WORLD MARKET
Although there is increase in the exports, exporters of leather and leather products say that they are facing a difficult situation never witnessed before as raw hides and skins are scarce both at home and abroad and prices are exorbitant. In short an unprecedented situation prevails in the market. Hence they are of the opinion that the government would do well to announce some incentives including interest subsidy as demanded by Mr. M. Rafeeque Ahmed, Chairman, Council for Leather Exports (CLE) for all categories of exporters to enable them to compete in the highly competitive world market where countries like China and Pakistan are active posing a big challenge to Indian exporters.
A leading exporter pointed out that there is an urgent need for the CLE to appoint “an expert team” to analyse the present market situation prevailing in the world leather industry for future planning of our country’s vital leather industry.
CHENNAI MARKET
Demand continues for all varieties of leather and prices remain almost unchanged. Exporters buy their requirements at around the following prices:
E. I. Tanned goat skins
4/7 sq. ft. Run Rs. 75, Run/V/IF combined Rs. 60, V/IF/LIF Rs.55, Lining Rs. 42, and Rejection Rs. 35
5/7 sq. ft. ABC Suede Rs. 60, All Suede Rs. 55, All Suede up to Heel grip Rs. 50
E. I. Tanned sheep skins
4/7 sq. ft. Lot (mostly Run, V and IF) Rs.90
F/C and wet blue goat and sheep skins are also in good demand at different prices depending on the quality and selection. In leather Centres like Vaniyambadi, Ambur, Erode, Dindigul etc. hectic business is taking place.
OVERSEAS MARKET
The following are the approximate quotations of exporters:
GOAT LEATHERS
Material Size/sq. ft. Substance Selection Price US$ per sq. ft. C&F
Goat upper leather 3/5 or 4/7 0.6/0.8 mm ABC 2.75
Goat milled leather 4/7 0.6/0.8 mm E 2.25
Goat suede leather 3/5 or 4/7 0.6/0.8 mm ABC/D/E 2.50/2.00/1.50
Goat lining leather
4/7 0.5/0.7 mm TR-1/2/3 1.60/1.50/1.40
6/9 0.6/0.8 mm TR-1/2/3 1.65/1.55/1.45
Goat lining leather lot 3/9 0.5 up mm Stock lot 1.25
SHEEP LEATHERS
Material Size/sq.ft. Substance Selection Price US$ per sq.ft. C&F
Sheep Suede/Cabretta leather 4/7 0.6/0.8 mm ABC/D/E 3.00/2.50/2.00
Sheep Suede/cabretta leather 6/9 0.8/1.00 mm ABC/D/E 3.25/2.75/2.25
Sheep lining leather 3/5 or 4/7 0.5/0.7 mm TR-1/2/3 combined 1.75
(Indian Leather, February 2012)
V.M. Khaleelur Rahman
Leather market continues to be firm. It is generally believed in the leather circles that this year 2012 will also be as active as last year in growth, production and export of leather and leather products. The overwhelming interest shown by exporters, importers and dealers of leather, leather products, chemicals, machinery and equipment etc. to participate in the present India International Leather Fair proves that the Indian leather industry is determined to attract the world.
INCREASE IN EXPORTS
According to Council for Leather Exports, the export of leather and leather products increased by 27.33% to US$2741.48 million or Rs.125604.91 million during the period April-October 2011 from US$ 2152.98 million or Rs. 98654.40 million during the same period in 2010. The details of the product wise export performance during these periods are given below:
CATEGORY (Value in Million Rs) % VARIATION
APRIL-OCT 2010 APRIL-OCT 2011
FINISHED LEATHER 21998.24 26271.08 19.42%
LEATHER FOOTWEAR 36063.70 43882.36 21.68%
FOOTWEAR COMPONENTS 5666.17 7758.73 36.93%
LEATHER GARMENTS 10110.00 15331.20 51.64%
LEATHER GOODS 21140.53 27565.04 30.39%
SADDLERY AND HARNESS 2252.81 2855.87 26.77%
NON-LEATHER FOOTWEAR 1422.95 1940.63 36.38%
TOTAL 98654.40 125604.91 27.32%
Source : DGCI &S
CATEGORY (Value in Million US$) % VARIATION
APRIL-OCT 2010 APRIL-OCT 2011
FINISHED LEATHER 480.08 573.40 19.44%
LEATHER FOOTWEAR 787.04 957.79 21.70%
FOOTWEAR COMPONENTS 123.66 169.34 36.95%
LEATHER GARMENTS 220.64 334.62 51.66%
LEATHER GOODS 461.36 601.64 30.41%
SADDLERY AND HARNESS 49.16 62.33 26.79%
NON-LEATHER FOOTWEAR 31.05 42.36 36.40%
TOTAL 2152.98 2741.48 27.33%
The following table gives the details of India’s export of leather and leather products to different countries during April-October 2011 vis-à-vis April-October 2010
COUNTRY (Value in Million US$)
APRIL-OCT % change
2010 2011
GERMANY 285.00 426.23 49.56%
U.S.A. 198.98 243.28 22.26%
U.K. 279.13 316.27 13.31%
ITALY 249.89 317.05 26.88%
FRANCE 142.95 159.22 11.39%
HONG KONG 196.58 199.15 1.31%
SPAIN 134.32 168.38 25.35%
RUSSIA 9.20 17.64 91.74%
NETHERLANDS 81.57 109.38 34.08%
AUSTRALIA 27.88 35.27 26.51%
NEWZEALAND 3.19 3.22 0.80%
DENMARK 28.81 36.75 27.58%
GREECE 5.93 5.90 -0.49%
CANADA 16.82 22.00 30.78%
SWITZERLAND 12.83 19.02 48.25%
SWEDEN 18.54 26.14 40.98%
S. AFRICA 17.56 22.38 27.47%
AUSTRIA 14.10 19.47 38.06%
BELGIUM 40.35 64.78 60.57%
JAPAN 11.21 15.44 37.73%
PORTUGAL 21.19 28.82 36.05%
CHINA 42.87 66.57 55.27%
IRELAND 3.03 3.88 27.97%
U.A.E. 40.09 59.09 47.39%
INDONESIA 10.97 13.41 22.31%
KOREA REP. 17.76 23.30 31.23%
FINLAND 6.94 11.02 58.91%
SAUDI ARABIA 12.62 22.89 81.36%
OTHERS 222.68 285.51 28.21%
TOTAL 2152.98 2741.48 27.33%
Source : DGCI &S
INCENTIVES NEEDED TO COMPETE IN WORLD MARKET
Although there is increase in the exports, exporters of leather and leather products say that they are facing a difficult situation never witnessed before as raw hides and skins are scarce both at home and abroad and prices are exorbitant. In short an unprecedented situation prevails in the market. Hence they are of the opinion that the government would do well to announce some incentives including interest subsidy as demanded by Mr. M. Rafeeque Ahmed, Chairman, Council for Leather Exports (CLE) for all categories of exporters to enable them to compete in the highly competitive world market where countries like China and Pakistan are active posing a big challenge to Indian exporters.
A leading exporter pointed out that there is an urgent need for the CLE to appoint “an expert team” to analyse the present market situation prevailing in the world leather industry for future planning of our country’s vital leather industry.
CHENNAI MARKET
Demand continues for all varieties of leather and prices remain almost unchanged. Exporters buy their requirements at around the following prices:
E. I. Tanned goat skins
4/7 sq. ft. Run Rs. 75, Run/V/IF combined Rs. 60, V/IF/LIF Rs.55, Lining Rs. 42, and Rejection Rs. 35
5/7 sq. ft. ABC Suede Rs. 60, All Suede Rs. 55, All Suede up to Heel grip Rs. 50
E. I. Tanned sheep skins
4/7 sq. ft. Lot (mostly Run, V and IF) Rs.90
F/C and wet blue goat and sheep skins are also in good demand at different prices depending on the quality and selection. In leather Centres like Vaniyambadi, Ambur, Erode, Dindigul etc. hectic business is taking place.
OVERSEAS MARKET
The following are the approximate quotations of exporters:
GOAT LEATHERS
Material Size/sq. ft. Substance Selection Price US$ per sq. ft. C&F
Goat upper leather 3/5 or 4/7 0.6/0.8 mm ABC 2.75
Goat milled leather 4/7 0.6/0.8 mm E 2.25
Goat suede leather 3/5 or 4/7 0.6/0.8 mm ABC/D/E 2.50/2.00/1.50
Goat lining leather
4/7 0.5/0.7 mm TR-1/2/3 1.60/1.50/1.40
6/9 0.6/0.8 mm TR-1/2/3 1.65/1.55/1.45
Goat lining leather lot 3/9 0.5 up mm Stock lot 1.25
SHEEP LEATHERS
Material Size/sq.ft. Substance Selection Price US$ per sq.ft. C&F
Sheep Suede/Cabretta leather 4/7 0.6/0.8 mm ABC/D/E 3.00/2.50/2.00
Sheep Suede/cabretta leather 6/9 0.8/1.00 mm ABC/D/E 3.25/2.75/2.25
Sheep lining leather 3/5 or 4/7 0.5/0.7 mm TR-1/2/3 combined 1.75
(Indian Leather, February 2012)
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